While gas prices tend to differ from state to state and country to country, the United States stands out for its remarkably low gas prices compared to other wealthy nations. In fact, the U.S. is home to some of the cheapest gas prices in the world. In this article, we’ll explore the 20 states within the U.S. that offer the most affordable gas prices, shedding light on the factors that contribute to this phenomenon.
The primary reason behind the low gas prices in the U.S. is the country’s massive indigenous oil production, making oil and gas readily accessible and affordable for mass distribution. This abundance of local production saves American consumers an estimated $203 billion annually, equivalent to $2,500 for each family of four. Additionally, the oil and gas industry supports over 12 million American jobs, generates billions of dollars in tax revenue, and ensures energy security.
Aside from indigenous production, another key factor that contributes to the low gas prices in the U.S. is the exceptionally low gas taxes. The federal gas tax, which has remained unchanged since 1993, currently stands at 18.4 cents per gallon. This relatively low tax, coupled with the country’s efficient refining capacity, allows for affordable gas prices.
As of November 27th, 2023, the average price of gas in the U.S. was $3.535 per gallon. However, the prices vary from state to state. To determine the 20 states with the cheapest gas prices, we referred to AAA and the Energy Information Administration. Here are the states, ranked based on their gas prices as of November 29th, 2023:
1. Indiana: $3.074 per gallon
2. Oklahoma: $3.090 per gallon
3. Missouri: $3.091 per gallon
4. Louisiana: $3.148 per gallon
5. Mississippi: $3.158 per gallon
6. Kansas: $3.165 per gallon
7. Alabama: $3.173 per gallon
8. Texas: $3.182 per gallon
9. Kentucky: $3.189 per gallon
10. Arkansas: $3.194 per gallon
11. Tennessee: $3.201 per gallon
12. Minnesota: $3.205 per gallon
13. South Carolina: $3.209 per gallon
14. Michigan: $3.219 per gallon
15. Iowa: $3.224 per gallon
16. Nebraska: $3.226 per gallon
17. Ohio: $3.229 per gallon
18. Wisconsin: $3.230 per gallon
19. North Dakota: $3.230 per gallon
20. Illinois: $3.238 per gallon
By understanding the factors that contribute to low gas prices in certain states, consumers can better plan their travels and calculate their expenses. Factors such as local production, gas taxes, and refining capacity play a crucial role in determining the price of gas in each state.
1. Why are gas prices in the U.S. lower compared to other countries?
Answer: The U.S. benefits from massive indigenous oil production, low gas taxes, and efficient refining capacity, leading to affordable gas prices.
2. What is the federal gas tax in the U.S.?
Answer: The federal gas tax in the U.S. is currently 18.4 cents per gallon.
3. How does local oil and gas production impact gas prices?
Answer: Local oil and gas production in the U.S. contributes to readily accessible and affordable gas prices, saving American consumers billions of dollars each year.
4. Which states have the cheapest gas prices in the U.S.?
Answer: As of November 29th, 2023, the 20 states with the cheapest gas prices in the U.S., ranked from lowest to highest, are: Indiana, Oklahoma, Missouri, Louisiana, Mississippi, Kansas, Alabama, Texas, Kentucky, Arkansas, Tennessee, Minnesota, South Carolina, Michigan, Iowa, Nebraska, Ohio, Wisconsin, North Dakota, and Illinois.